Property Futures

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Looking beyond mere profiteering: rental yields in the UK

News: findings on letting-out performances in the UK

It has been found that property investment in the wrong direction can lead to low or even negative returns, so says a recent report urging buy-to-let investors not to focus their efforts on purely profit motives alone.

The real yield concept

Looking beyond gross rental yields, analysts have calculated what they call a ‘real yield’ for the most popular rental locations across the UK. The new yield concept assesses the impact of changing capital values to produce what the firm believes is a more realistic view of rental yields and their investment potential.

A UK letting overview

The analysis is based on median asking prices and rents of typical 2 bedroom properties and combines changes in the capital values and gross rental yields.  The current top 10 areas attracting the highest real yields are all in the London area, but the worst locations can be found throughout the United Kingdom.

The UK analysis report reveals that all of the worst performing areas attract negative ‘real yields’ and the information prove very interesting reading for potential buy-and-let investors.

Admittedly, many reports have been written on a North/South differentiation between the property market but it has been clearly established that 6 of the 10 worst performing areas are located in the South of England, including the relatively affluent area of Guildford.

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2 comments on “Looking beyond mere profiteering: rental yields in the UK

  1. Richard
    May 2, 2013

    Hi – can you point me towards the company or the original article that undertakes this research please?

    • PropertyFutures
      May 2, 2013

      Hi Richard, looking at our writers notes I think he got it from PropertyWire that was in turn basing it on a report from Home.co.uk…. James (just let me know if I can help with anything else)

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